Will I automatically loose my tax refund?

[Flatbroke1]

My lawyer will be probably be filling my chapter 7 on Tuesday Feb 2 or so. I suppose I can expect that I will have to turn over any income tax refund to the trustee? This is a no asset case.

Thanks!

[coolmom04]

From what I understand, unless you can cover the refund with exemptions, then you'll have to turn it over.. but I am sure more experienced posters will respond

Why not wait to file after you get your refund and spend it on necessities? That's what we're doing.

[Flatbroke1]

Thanks, we were sued on Dec 30, 2009 by BOA, so we are rushing to file before they get a default judgement.

[aces67]

You HAVE to have your attorney exempt it otherwise the trustee will take it.

[backtoschool]

Whether or not the trustee will take your tax refund depends on your district. In some districts, the trustees take all refunds, in other districts they ask for the refund specifically at the 341 on a case by case basis. If you have the exemptions to cover the refund, then you should definitely exempt it.

[Chowder]

Automatically? No.

[Hoss454]

Ya I wanted to know this too, if the trustee wanted it would the trustee tell you at the 341 meeting?

[Llelxon]

Our trustee told us at the 341 he wanted to see our tax return. He also sent a letter a couple weeks ago to remind us.

[tdawg]

Thanks, we were sued on Dec 30, 2009 by BOA, so we are rushing to file before they get a default judgement.

You mean that BOA served you with a notice that you're being sued on Dec. 30th? From what I understand from what I've read here, you should be able to buy some time by responding to it before you file, but hopefully someone who has been sued before they filed will chime in. I'm guessing you have a little more time than you think.

[coolmom04]

Y From what I understand from what I've read here, you should be able to buy some time by responding to it before you file, but hopefully someone who has been sued before they filed will chime in. I'm guessing you have a little more time than you think.

That's what I was thinking, too - from reading here.

[Doomonic]

It probably depends on the district and the trustee. I had a no asset case in VA. I used an exemption my vehicle but not my refund. I held on to my refund until the 341 was over just in case he asked for it. It was never mentioned at the 341 and I got to keep it.

[BKDefender]

If you were served a complaint and summons on December 30th, then you should file an answer and begin negotiation with the creditor's attorney for settlement. It should give you the time you need to file your tax return electronically, have it electronically wired into your bank account, and you can spend it on things you need. In addition, if your state exemptions allow you to exempt a Roth IRA, you might look into funding up to the $5k/yr limit for your last year's Roth IRA and up to the $5k/yr limit for this year's Roth IRA (you can fund last year's up to the end of March this year.)

Good luck!
--William

[OhioFiler]

You mean that BOA served you with a notice that you're being sued on Dec. 30th? From what I understand from what I've read here, you should be able to buy some time by responding to it before you file, but hopefully someone who has been sued before they filed will chime in. I'm guessing you have a little more time than you think.

Most courts demand an answer within 30 days, in this case by January 29. Hopefully, the OP filed an answer.